Korean Retailer Coupang Gets $1 Billion Investment
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SoftBank Corp. and Coupang have announced a definitive agreement under which a subsidiary of SoftBank will invest $1 billion in Coupang, the largest and fastest growing standalone ecommerce player in Korea. The investment is expected to close at the beginning of July, and will bring the total amount of funding raised by Coupang over the past year to nearly $1.5 billion.
This funding will fuel Coupang’s innovations in its end-to-end fulfillment service, same-day delivery network and leading mobile applications that will extend Coupang’s leadership in the future. Coupang will also expand its R&D offices in Silicon Valley, Seattle, Shanghai and Seoul.
Driven by an unprecedented level of mobile engagement and its revolutionary delivery service, Coupang has become one of the world’s most disruptive ecommerce companies. With more than 25 million mobile application downloads and the highest number of active users, the company is the leading mobile commerce player in Korea. Today, mobile sales account for over 75% of the company’s revenue and over 85% of its total traffic.
“We welcome SoftBank as a long-term partner and look forward to leveraging their global expertise and vast network to further accelerate our growth,” said Bom Kim, Founder and CEO of Coupang. “This milestone investment from one of the greatest IT investors in the world provides even more financial strength and flexibility to expand our operations and redefine what a great end-to-end customer online shopping experience is all about.”
Nikesh Arora, Vice Chairman of SoftBank Corp., said Coupang is one of the fastest-growing and most disruptive Internet companies in the world.
“Coupang is setting a new standard for how ecommerce can and should be done across the globe with its innovative technologies and approach to same-day delivery, mobile commerce, and customer service,” Arora said. “We look forward to working with Bom Kim and his talented team and are excited to support their continued expansion.”
Coupang’s explosive growth is powered by its cutting-edge delivery service, built on its proprietary technology infrastructure. With unmatched retail selection, the largest end-to-end fulfillment operations in Korea and a home-grown fleet of “Coupang Men” to enable last-mile delivery, its monthly direct retail revenues have more than tripled in the past six months.
Questions & Answers
Q.How much total funding has Coupang raised over the last year, including SoftBank's recent investment?
How much total funding has Coupang raised over the last year, including SoftBank's recent investment?
Including the $1 billion investment from SoftBank, Coupang has secured nearly $1.5 billion in total funding over the past year. This significant capital injection is expected to close at the beginning of July.
Q.Which specific areas of its operations will Coupang focus on developing with the new investment?
Which specific areas of its operations will Coupang focus on developing with the new investment?
Coupang plans to use the funding to advance its end-to-end fulfillment service, enhance its same-day delivery network, and further develop its leading mobile applications. It will also expand its R&D offices.
Q.What proportion of Coupang's revenue and total traffic currently comes from mobile sales?
What proportion of Coupang's revenue and total traffic currently comes from mobile sales?
Mobile sales contribute over 75% of Coupang's total revenue, demonstrating its strong mobile commerce presence. Also, more than 85% of the company's overall traffic is generated through mobile platforms.
Q.How has Coupang's monthly direct retail revenue grown recently?
How has Coupang's monthly direct retail revenue grown recently?
Coupang's monthly direct retail revenues have more than tripled over the past six months. This growth is largely driven by its proprietary technology infrastructure and cutting-edge delivery service, including its 'Coupang Men' fleet.